Tilly’s Inc. (NYSE: TLYS) reported fiscal second-quarter sales fell 17% to $168.3 million, attributing the decrease to “the highest inflationary environment in 40 years.”
The Irvine-based retailer missed analysts’ consensus for $173.8 million. It forecasts third-quarter sales around $165 million to $170 million, implying an 18% to 21% decrease from a year ago; analysts had expected $172.2 million.
“At its peak, the back-to-school season produced an improved comparative trend in late July and early August,” Chief Executive Ed Thomas said in a statement. “However, this trend has since declined, and we believe the remainder of the third quarter will be challenging as we anniversary last year’s early holiday shopping patterns.”
Thomas noted that the fourth quarter may have “a better performance trend” during the holiday season.
Tilly’s was up 2.3% at $7.50 in after-hours trading. Shares of the company, which has 243 stores, have fallen 55% since January; it has a market cap around $220 million.